Man Who Predicted Collapse Of Euro Against Swiss Franc Warns Current Global Financial System Will Cease To Exist

Today the man who 73 days ago remarkably predicted the collapse of the euro against the Swiss franc stunned King World News when he said that the current global financial system will cease to exist. This interview takes a frightening look what is really happening around the world and the chaos that is still to come.

Egon von Greyerz: “Eric, the Greek situation is key because the consequences of the outcome in Greece will have a major impact on the world. It’s interesting to note that Greece has been in default or rescheduling its debts for 50 out of the last 200 years. The Greek Finance Minister, Varafoukis, is playing a very clever game….

Continue reading the Egon von Greyerz interview below…

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“Varafoukis demands that there will be no austerity and that most of the debt be forgiven. This is unacceptable to the Germans and the Eurocrats.

Varafoukis Knows How To Play This Game

But the Greek Finance Minister, Varafoukis, knows how to play this game because he is an expert at game theory. He has now opened up a dialogue with China and Russia. This is unacceptable to the EU and the United States. Neither the EU nor the U.S. would welcome a Russian naval base in Greece.

Major Repercussions For Europe And The World

Regardless of the outcome in Greece, there will be major repercussions for Europe and the world. The world is already very close to an avalanche of money printing and defaults. Also, other countries in the EU are waiting to follow Greece.

In Spain, an even more radical opposition party than the one in Greece is now well ahead in the opinion polls and is likely to win the November election. Their platform is a canceling of debts with the EU, public control over energy and banks and withdrawal from NATO. And in Italy, all three opposition parties are anti-euro. They are calling for a return to the lira. This anti-euro sentiment is already spreading to France.

World Incredibly Fragile And Unstable

Eric, this will not end well because the world is so incredibly fragile and unstable. The truth is that central banks have no idea how to get out of this crisis. The problem is that there is no way out of this without a major implosion of the world economy.

Central bank after central bank is now setting negative interest rates. The latest today is Sweden. This is being done in an attempt to create inflation. Sweden is also starting a QE program and this is with an existing massive property bubble and consumer debt problem.

History Repeating From The Great Depression

Another interesting fact has to do with Austria’s 3rd largest bank — their shares are now down 60 percent from 2014. This is because of fears stemming from mortgage loans made in Swiss francs. Well, the Great Depression of the 1930s started with an Austrian bank going under. We now have to ask: Is history repeating once again?

In the meantime, central banks around the world are now monetizing 100 percent of the debt being issued. Eric, the central banks are the only buyers of government debt. Nobody else would be foolish enough to buy government debt that will never be repaid in today’s money.

The Fed Is Already Bankrupt

Coming to the United States, things are not as rosy as the mainstream media would have people believe. There are renewed demands that the Fed should be audited. But I can tell you, Eric, even without an audit, that the Fed is bankrupt. The Fed only has capital of $57 billion and they have assets of $4.4 trillion. That is a massive 77-times leverage. Half of their assets are in government debt that can never be repaid and the rest is in mortgage debt that can never be realized at the current value of $1.7 trillion. But all central banks have insolvent balance sheets across the globe.

Economic Collapse In America

Let’s look at the facts about what is really happening in the United States: 2/3 of Americans do not have $500 in savings. So the average American has huge personal dedt and is one paycheck away from bankruptcy. Retail sales were down 0.8 percent in January and 0.9 percent in December. This is the worst decline since 2009. Median income is down 10 percent since 2000.

The Labor Participation Rate continues to fall in the U.S. — all the way down to 62 percent. That figure was 67 percent in 2000. So 93 million people are not in the labor force. In 2000 that figure was 68 million. That’s an additional 25 million who are not in the labor force.

Officially, 8.7 million people in the United States are unemployed. But think about this: There are another 93 million who are not considered to be in the labor force. So the supposed unemployment rate of 5.6 percent is a preposterous fabrication.

To give you an idea of how phony the unemployment figures really are: If you work only 10 hours in the U.S., you are not considered unemployed. But how can the average person survive with only 10 hours of pay each week? So the government statistics are all a lie and John Williams’ 23 percent unemployment number is a much more accurate figure.

U.S. Debt To Hit $25 Trillion

Eric, the point I’m making is that the problems in the U.S. are just as big as the problems in Europe. The U.S. is the most indebted nation in the world. The U.S. already has $18 trillion of debt but within the next 4 – 5 years that figure will rise to a staggering $25 trillion. And when the U.S. dollar begins to fall, the U.S. stock market will be under massive pressure.

Time Is Running Out

The bottom line is that the world is heading toward a catastrophic outcome and there is nothing that can be done to stop it. In the meantime governments are desperately using propaganda to try to keep social order in their countries. This will only work for so long before massive protests erupt and total chaos ensues. Time is running out for the current global financial system — it will cease to exist — and people need to make sure that they have themesleves and their families prepared for the coming chaos.”

Greyerz added: “The short-term manipulation in gold is designed to keep people out of the market. Maguire touched on this in yesterday's KWN interview. We have already seen the lows in gold and the central planners are simply trying to keep fear alive in this market. It won't work, Eric, because the problems we have just discussed are guaranteed to propel gold to new highs in 2015.” ***ALSO JUST RELEASED: MAJOR WARNING – Fear Barometer Just Spiked To One Of The Highest Levels In History!CLICK HERE.